All Forum Posts by: Account Closed
Account Closed has started 141 posts and replied 4068 times.
Post: Is anyone worried about the upcoming foreclosures?
- Investor
- Scottsdale Austin Tuktoyaktuk
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Originally posted by @Aaron D Estes:
Do you think that the government trying to keep foreclosure numbers down will keep the housing prices inflated or will this new crash be as bad or worse than 2008?
Do you mean here or in China? It's a bigger problem than CA, NY, WA, Il combined. Have a nice day.
"Catastrophic" Property Sales Mean China's Worst Case Scenario Is Now In Playhttps://www.zerohedge.com/mark...
But first, a quick update on Evergrande, which - to nobody's surprise - we learned today is expected to default on its offshore bond payment obligations imminently according to investment bank Moelis, which is advising a group of the cash-strapped developer’s bondholders. Evergrande, which is facing one of the country’s largest defaults as it wrestles with more than $300 billion of debt, has already missed coupon payments on dollar bonds twice last month.
We had to do a double take when we saw this because these are absolutely terrifying numbers and are, to put it bluntly, scarier than Goldman's "worst case scenario"; what's worse this sudden collapse in China's property market is taking place before Evergrande has even defaulted
As such, any contagion from the ongoing turmoil sweeping China's heavily indebted property sector will impact not the banks, which are all state-owned entities and whose exposure to insolvent developers can easily be patched up by the state, but the property sector itself, which as Goldman recently calculated is worth $62 trillion making it the world's largest asset class, contributes a mind-boggling 29% of Chinese GDP (compared to 6.2% in the US) and represents 62% of household wealth.
Post: STR - Management Fee
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- Scottsdale Austin Tuktoyaktuk
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Originally posted by @Richard Tran:
Hi,
I am out of state investor.
I got a quote for Short term rental (AirBnB in Destin FL) Management Fee 25%, is that reasonable ?
Thanks.
No, but it is what they charge.
Post: Anyone using Propstream websites?
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- Scottsdale Austin Tuktoyaktuk
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Originally posted by @Tim Oppelt:
Testing it with an investorlift site but not propstream at all. Mainly have used Carrot.
Is Carrot a platform or do they have preset websites to select from? Who updates and maintains it (adds properties & removes properties)?
Post: Seller financed 2nd will not accept payment
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- Scottsdale Austin Tuktoyaktuk
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Originally posted by @Stephanie Trevizo:
Hi everyone, in April 2020 we purchased a 4-unit property in Los Angeles where the seller financed a 2nd mortgage. The seller stayed in the property as our tenant after close. We are attempting to pay off the 2nd, which is due in March of 2022, so we can refinance the first mortgage. However, the lender (seller/private party) will not provide a payoff statement and said they do not want to accept payment because they "will get murdered in taxes and want the extra income". Extra income being our interest payment. There is no prepayment penalty per the note. One of our attorney's told us she cannot "just decide" not to allow pay off and I am waiting to hear back from another attorney. Has anyone experience this?
I think what your seller is really looking for is cash flow. All they have to do is subordinate the 1st. That means the first is allowed to be paid off, a new loan is in place and docs are prepared to place the seller in 2nd position. It's a common transaction in investing.
Post: 401k or Real Estate?
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- Scottsdale Austin Tuktoyaktuk
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Originally posted by @Tony Kim:
Originally posted by @Account Closed:
Originally posted by @Cameron Tope:
Hey James,
Even though I love rentals, I'm going against the posts above - keep your 401k.
While I was working my W2, I borrowed against my 401k many times for rehabs or down payments while I was building my rental portfolio, but never made a withdrawal.
The balance between active investments like real estate and passive investments like index funds is ideal.
Rental property cash flow is inconsistent due to lease fees, repairs and turnovers. Rentals are leverageable (which creates those juicy double digit returns) but they are also illiquid.
Index funds are the opposite, they are fairly consistently going to return 8-10% a year, require no time involved and can be sold on a per share basis (at a transparent price) Monday through Friday.
I contributed up to our company match, then invested any excess funds in real estate. This combination, I believe, is ideal for becoming financially independent.
Best of luck!
What happens if the market crashes 30% to 30%?
Let's revisit your options in December after the turmoil. ;-)
The S&P 500 dropped almost 32% last year within a one-month period between Feb and March. We all know what happened after that. I pulled everything I had via HELOC and all my dry powder into Tesla and now have enough to retire on the French Riviera.
Just kidding...that's what I should have done, but of course, like a lot of others I had no idea when the floor would be reached.
Lol. Who knows what the stock market will do, but here is what happened in 1929 - it took 25 years to recover
Can it ever happen again? No, Nein, Ne, Jo, Sega, Non, Qo', Nei, いいえ, 唔係, Het, Na, Όχι, לא, In any language, it can't happen again.
It Can't because we as investors are CONVINCED it will Never Happen Again! Therefore it is forbidden to happen!
Just kidding. I've been around long enough to know that wishful thinking doesn't make it so.
Post: Hostile Tenants - Need Advice!
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- Scottsdale Austin Tuktoyaktuk
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Originally posted by @Account Closed:
Hello BP Community!
I have a rather bizarre situation and was hoping for some insight. I have a duplex (two units, one address) and rented out one unit to tenants and was keeping the other unit for myself. The tenants knew this going in and were fine with it and I have written communication where they refer to the other unit as my apartment.
For some insane reason they are now claiming both units are theirs (because they share one address) and are making my life hell (sending intimidating emails, yelling at me when I go to the property (my unit) and demanding notice for entering my unit). They have been taking pictures and video of me constantly. I had to go to the police yesterday but they can’t do anything unless the tenants hurt me although they did offer a police escort when I return. I am currently staying at a hotel because I am afraid of them. This is in Texas.
I had someone eviceted on the "quiet enjoyment" theory. Seems like that applies here.
Post: Landlord said she could have Two (2) Cats . . .
- Investor
- Scottsdale Austin Tuktoyaktuk
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Originally posted by @Nathan Gesner:
I like how they use the word "apparent" as if they're just not sure whether it constitutes animal hoarding.
As if the smell alone wouldn't be enough.
Post: Security camera to monitor job site
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- Scottsdale Austin Tuktoyaktuk
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Originally posted by @Clarence Ng:
We just had a burglary and lost a bunch of tools. Which camera or system would you recommend to protect or monitor the site for safety and optionally double as a tool to check for trespassing / capture work progress
Sorry to hear that. It's a real pain to lose your tools. I use SWANN and I can watch from my computer or my phone. It also has wireless and night vision and a motion sensor. I'd also plaster signs outside that there are cameras watching them.
The truth is if someone breaks in & has a hat on and keeps looking down, the camera doesn't cath their face. Thieves know this. I set mine inside facing the doors and windows and that allows for a better face capture. What you don't want is for the thieves to steal the recording unit. I set mine in the attic and used wireless so they would spend a long time looking for it if they thought they wanted it. Cameras and an alarm system work well together.
Post: Landlord said she could have Two (2) Cats . . .
- Investor
- Scottsdale Austin Tuktoyaktuk
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BALTIMORE (WJZ) — More than 130 cats were removed from a Baltimore home Tuesday in an apparent case of animal hoarding.
“Trying to maintain enough litter boxes and clean space for 133 cats is impossible in a space as small as the row home was,” Deacon said.
Meanwhile next door, the neighbors carried on with their day.
I think someone should introduce them one to another.
Post: 401k or Real Estate?
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- Scottsdale Austin Tuktoyaktuk
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Originally posted by @Patrick M.:
Originally posted by @Account Closed:
Let's revisit your options in December after the turmoil. ;-)
The market will crash 30-60 percent in your 30-40 year investing period, maybe even 3 times. EMBRACE IT! Keep investing, you are getting equities on SALE! Reprogram your head... don't be a sheep! Pile in.
Maybe Mike Hern can show us a graph where the S&P did not recover it's losses? Yeah I didn't think so... It comes back and it comes back with a VENGEANCE! It will drop, it may drop a lot, but those drops are only temporary, but it's climb is RELENTLESS!
"Oh, but what about if it takes years to rebound?" Then that is years of you buying stocks on sale!!! Don't be a sheep- reprogram your brain... do a brain hack, as the kids say. Those people who kept contributing through the aughts and financial crisis are millionaires- many several times over.
I LOVE MY REAL ESTATE INVESTMENTS. They are providing me with cash now- some of which helps me max my 401k, some that helps me invest in indexes and 529s. And yes, they will factor in, somehow, to my retirement- but I will be damned if I would forsake a VERY LIQUID vehicle for one that is ILLIQUID and subject to a growing, progressive attack.
Compounding interest is a gift from the gods... it pays off HUGE over time. Patience.
If you find the right RE investment, take a loan from yourself and pay yourself back interest.
Ah, to be young and naive (def: "Lacking worldly experience and understanding") But, that is what a free market economy is made of, naive investors. Some, to be sure, actually do benefit from a down stock market & there always are contrarian investors who will do well during that time.
That being said, is it your advice that when you see a train wreck coming and you are in the way, that after you are smashed by the train, "don't worry, over time the pain won't be so bad"?